Introducing the latest reports of your own comptroller and auditor general (CAG) getting 2014-fifteen, prominent accountant standard Jagbans Singh told you Punjab’s revenue expense (non-productive) try increasing while the capital costs (productive) had gradually denied. (Karun Sharma/HT Images)
Inspite of the significant states created by the Sad-BJP regulators, the principal accountant general presented an abysmal image of Punjab finances when you are giving a noisy and you may obvious warning – the state was oriented to own a primary personal debt trap since the 1 / 2 of of one’s financial liability out-of whopping Rs step 1.12-lakh crore has to be paid down in the next seven many years.
Unveiling three of four reports of the comptroller and auditor general (CAG) having 2014-15, prominent accountant general Jagbans Singh said Punjab’s revenue costs (non-productive) try growing because resource expense (productive) had slowly refuted. The guy told you a large part of your expenses are done on the installment and you can repair the brand new hefty money, making almost no currency into the state to expend on innovation issues.
Besides the condition of the fresh funds, the latest reports released for the Monday also discussed multiple instances of misappropriation regarding money worthy of crores away from rupees, along with reflecting the fresh failing fiscal fitness of one’s social industry gadgets.
New CAG and additionally discover a major mismatch between the dollars borrowing restriction (CCL) wanted from the government in comparison to the inventory from cereals stored because of the condition procurement businesses
The fresh new revenue invoices increased at an annual average speed out-of 8.27% throughout 2010-11 so you can 2014-15, whereas revenue expenditure increased at an annual average price from 8.34%. The brand new money cost (non-productive) went on to help you make-up a dominant piece (93 so you’re able to 95%) of the complete costs during this period. The rise within the cash invoices inside the 2014-15 (Rs 4,100 crore) has also been mainly due to boost in grants away from authorities off Asia.
The new revenue costs (non-productive) increased because of the Rs 5,100000 crore, whereas funding costs (productive) enhanced because of the Rs 900 crore. The administrative centre costs, not, was only 33% of your forecasts built in brand new fiscal combination roadmap.
The new money deficit rose so you’re able to Rs seven,600 crore out-of a shortage from Rs 5,three hundred crore in 2010-11. The federal government don’t secure the money deficit within this maximum regarding ‘no each cent’ recommended on the fiscal integration roadmap.
Individuals obligations risen to Rs step 1.12-lakh crore away from Rs 75,one hundred thousand crore this season-11. A major percentage of borrowings is used to possess installment of before borrowings (47 to help you 70%) and you may revenue expense (20 so you can 39%). Just 8 in order to 19% of borrowings have been used to have money costs during the 2010-fifteen.
“When it behavior continues, Punjab would not be capable make more revenue to service its obligations and it also would have no solution however, to boost the new borrowings yearly to settle the newest borrowings from before ages,” says the fresh new declaration.
Regulators has to repay 11% of the personal debt ranging from step one-three-years, 20% anywhere between step three-5 years and you will 19% between 5-7 age. It shows that county has to pay more 50% of its loans within the next eight years. “That is a shocking reputation in addition to county is actually going into the a significant debt payment reputation, that’s known as obligations trap,” alerts the newest statement.
He said a corner of your expenditure is complete to your repayment and you will upkeep the newest hefty financing, making little money to own advancement circumstances
Even though the financial obligation-GSDP (disgusting condition residential equipment) ratio at 32% was for the address repaired (38.7%) 24 hour pawn shop ND beneath the Financial Duty and you may Budget Administration Operate, yet the borrowed financing were generally useful redemption off earlier costs. Around 23% of your cash receipts were used so you can solution new bills throughout the the modern season.
The Punjab bodies has been indulging in certain severe bluffing whenever you are glossing along side levels of one’s strength tools and you may cereals procurement firms.
Brand new CAG report placed in the latest assembly towards Saturday night has revealed that when you are account of your part of the abilities and you may purchase review of your own Punjab County Strength Company Restricted (PSPCL) and you may Punjab Condition Signal Enterprise Limited (PSTCL) was “refurbished” to appear best, the state procurement businesses exorbitant its the arrears by a number of hundred crores.
If you are unbundling new Punjab Condition Stamina Panel, Punjab got place a financial weight regarding Rs twenty five,000 crore on two the firms–PSPCL and PSTCL–by-passing unfunded debts on to them. Interestingly, the state bodies sought for so you can “refurbish the harmony sheets” by the inflating the collateral resource in the a couple of agencies from the Rs 3,700 crore from the highlighting individual efforts and you will offers and you can subsidies given that collateral resource and along with re also-respected home property of Rs cuatro,900 crore whose possession wasn’t vested regarding a couple successor entities.
New CAG report told you the state procurement agencies (SPAs) demonstrated Rs sixteen,350 crore since recoverable, at which Rs eleven,400 crore got licensed since doubtful. Additionally, there clearly was a good mismatch out of Rs 21,one hundred thousand crore involving the outstanding CC limitation and you may stock off foodgrains stored of the this type of providers.
Try examine of the information off 281 practices out of sales taxation/value added tax, county excise, motor vehicles, merchandise and you may passengers, forest invoices or any other department offices presented of the CAG shown around review/quick levy/death of funds aggregating Rs 2,five hundred crore when you look at the more than thirty five,one hundred thousand instances. Brand new departments been able to get well simply Rs crore.
Other than the condition of new cash, the account create to the Monday including discussed several instances of misappropriation off money well worth crores from rupees, and showing new a deep failing fiscal wellness of your social industry units.
